Design, manufacture, installation, service
and upgrade of elevators, escalators and
moving walkways for all buildings, including
commercial, residential, multipurpose
malls, educational institutions and urban
transportation systems.

Otis is involved in some of the largest and
most ambitious building projects in the
world. During the year, the company won
a contract to supply and install 30 elevators
and 16 escalators for the Lotte World
Tower in Seoul, South Korea. Standing
at approximately 1,820 feet, it will be the
second highest building in the world and
the tallest one in Asia.

In India, Otis will supply 47 elevators
and 16 escalators to Kohinoor Square, a
new LEED Platinum office complex under
construction in Mumbai. Kohinoor Square
will be equipped with Otis' Compass
destination management system, which
improves a building's traffic flow, and EMS
Panorama, a Web-based application that
enables building staff to monitor, control,
report on and manage a full range of
elevator functions.

During the year, the company
unveiled its enhanced NCE escalator.
It is the first escalator that is equipped
with a standard package of green
features, including a regenerative
drive, power standby features, LED
lighting and high-efficiency lubrication.

Much of the demand for Otis elevators
comes from its clean, energy-efficient
technology. Its Gen2 elevators are up to
50 percent more energy efficient than
conventional systems. When combined
with ReGen drives, they are up to
75 percent more energy efficient
than conventional systems without
regenerative drives. At the end of 2011,
more than 255,000 Gen2 elevators had
been sold worldwide.

Otis plans to open a number of
new factories in 2012 to meet growing
demand for its products. They include
a 215,000-square-foot facility in São
Bernardo do Campo, Brazil; the expansion
of the Bangalore factory in India; and a
factory in Chongqing, China. The company
also is opening a 423,000-square-foot
facility in Florence, S.C., which will become
the manufacturing center for its U.S. and
Canadian operations.

Carrier continues to benefit from the
transformation it began in 2008 to
simplify its businesses and focus on core
growth platforms. As the leading HVACR
company in the world, Carrier's strategic
growth drivers include a strong presence
in fast-growing markets, such as India and
China, where major construction projects
are underway; the anticipated recovery
in the U.S. commercial and residential
real estate markets; and continued
investment in technology, which is
delivering advanced, sustainable solutions
to customers.

During the year, the company
introduced its breakthrough NaturaLINE
container refrigeration system design.
The new NaturaLINE design has been
engineered to deliver best-in-class
efficiency by using carbon dioxide, a
natural refrigerant, instead of conventional
synthetic refrigerants, which have higher
global warming potential.

Two Carrier factories — in Monterrey,
Mexico, and Huntington, Ind. — were
certified LEED Gold in 2011. The Monterrey
factory is the world's first heating,
ventilation and air-conditioning factory
to receive LEED Gold certification.

Since 2000, more than 100 million
metric tons of greenhouse gas emissions
have been avoided as a result of customers
installing high-efficiency Carrier
systems. The savings, as measured by the
company's CO2NSERVATION Meter, are
equivalent to removing approximately
19 million cars off the road for one year.

Carrier won a number of major
contracts in 2011. Dalian Wanda Group
awarded an annual purchasing agreement
to Carrier China for the second consecutive
year, expanding the agreement to
include airside products in addition to
chillers. Transicold won multiple contracts
for its ThinLINE and PrimeLINE container
refrigeration units. Automated Logic will
provide a building management system
for 3 World Trade Center. And NORESCO,
Carrier's energy services company,
won a major contract from the Hawaii
Department of Public Safety.

UTC Fire & Security reached a number of
milestones during the year, including the
introduction of 90 new products. Among
them were two Edwards fire panels that
are designed to enhance building safety,
as well as a modular detector that combines
smoke, heat and carbon monoxide
sensing technologies.

Det-Tronics introduced its new
smoke and heat module, which seamlessly
integrates hazardous and nonhazardous
areas, such as living quarters and control
rooms, with a single life safety system.
The module supports multiple devices,
including smoke detectors, heat detectors,
carbon monoxide detectors and manual
call stations.

To support growth in the Middle
East, our fire and security business also
inaugurated a state-of-the-art training
center in Bahrain, which provides world-class
fire and security product training for
employees, business partners, end users
and consultants.

Italy's major train manufacturer,
Ansaldo Breda, is equipping 50 of its high-speed
trains with Marioff's fire protection
system. The project marks a significant
fire suppression installation within the
rail industry and is Marioff's first major
rail project in Italy since the introduction
of legislation requiring fixed fire suppression
systems for trains.

In the United Kingdom, Chubb
Systems installed a groundbreaking, integrated
network to monitor and manage
traffic on the nation's highway system.
It has led not only to improved efficiency
and safety, but also to reductions in fuel
emissions from idling vehicles.